>> all only through a really heavy-handed manipulation or coercion of the rules -- only three that. sean-- only through that. sean: all right, greta van susteren is standing by to go on the record. she is right there. greta: it is hard to find out what is what these days. there were the 1500 pages of an incomprehensible health-care bill, and the republicans just released their bill of rights. is it any better, or is it just a stunt? rnc chairman michael steele is with us. and john mccain faced a huge crowd at a town hall, and he

said our nation is in the middle of a peaceful revolt. what does that mean? we will ask the senator. he is going on the record. and lots and lots of your money, over 1000 people just got stimulus checks, but there is a problem. they were not supposed to. and it gets worse. guess who these people are? and guess where they are? that is next. and the town halls are not stopping. >> have you ever or any of your family members lived under socialized medicine, as i call it? i have, and i have relatives living under it, and trust me. it is not working. >> i have a really simple question that i think everyone can agree on. why do we not take the $23 trillion --

>> that is not right. that is not appropriate. >> you invited us here to speak. >> are you willing to take the plan? you did not answer it. will you? >> the answer is yes. >> ok. >> if it had not been for the veritable uprising of people all across this country about these proposals that were about to be rammed through, we would not be here discussing it, we would be lamenting it. >> the health-care proposal needs to be killed and now, in its entirety. no compromises, senator, please. no compromises, no compromises, no compromises. senator, nuke it now.

greta: rnc chairman michael steele joins us now. >> good to see you, greta. greta: let me just start there. what is this a bill of rights? >> in the beginning of the spring and summer, we watched the administration say we were going to have an of-care bill by july 31 without any real input or discussion by the american people little of members of congress. they were going to try to get it done by then but we raised concerns and talked more about it and laid out clearly what we thought we should be doing. town halls began to take place, and the citizens began to get ahold of it, and the one thing that struck me that was being left behind was our seniors. the administration put out there cutting $500 billion from the medicare program with no

indication here if that would be cutting waste or the substance of programs or what that was -- with no indication if that would be cutting waste, or the substance of programs. why we should be doing on behalf of the seniors as we begin this debate in the fall, so i wanted to lay out principles that kind of talk about the doctor-patient relationship, the role of government, the decision making process involving seniors and their care givers, and i wanted to be clear about it -- and their caregivers. greta: this is how you would like to see these proceeds, right? broad-based principles? >> yes, -- how you would like to see these proceed, right? broad-based principles? >> yes. to put into law those guidelines or protections, if you will, for

our seniors. greta: , are they sitting back, waiting to see what the democrat bill is so they can put some holes in it -- greta: , are they sitting back? -- greta: are they? >> between the house and the senate, there have been over 800 pieces of legislation and amendments to various bills introduced by democrats in the house and senate that have been rejected outright, so they tried that, writing the bill, if you will, where putting their input into the documents that have been produced -- or putting their input into the documents, and they were rejected, so i thought, let's put a place market in place, and and let's follow up. -- let's put a place marker in place, and then let's follow that up.

there is all of the bipartisanship this anti- partisanship that when the leadership is not doing anything -- and this bipartisanship that. the president is giving lip service when he is demanding that we work together -- is not demanding that we work together on this problem. greta: i understand that many what reform and say it is meeting. i understand they do not like the public option, the government option. i understand they say there is no bipartisanship. but why is it the republicans did not do health-care reform when they own to the house, senate, and presidency which when they owned -- when they owned the house, senate, and presidency? >> to me please put in place our

version of the health care debate, but that is the path, and i understand that. i am now the new chairman of the party. we have got leadership in the house that we are working with. we have governors run the country to deal with this issue every single day from mississippi to indiana to the vienna. they are fighting to try to balance those budgets -- to indiana to louisiana. i will applaud the administration for putting this on the table. what i will not a plot is the way they want to go about reforming our health-care system when the parts -- what i will not applaud is the way they want to go about reforming the system. there is no money here in about six or seven years, so with all of the spending, where will the money come from to deal with our seniors when there is no money

for medicare? greta: i understand at the town hall meetings, it is their opportunity to make their politicians listen, and sometimes they turn up the volume a little bit. do you have a sense that the democratic party and the president as leader are listening to what the republicans might offer, or is this sort of, "we know best. take it or leave it. this is the way it is going to be." and not a battle has been engaged. >> i think it is the latter, a take-it-or-leave-it, and i think the president set the tone when he said "i wanon," so i get bac, but do they not come back when the citizens of the country rise up because of the abuse of power, the arrogance of the policies you are putting in place to say, "this is not what

we want," to say there is an orchestrated effort by the republicans to undermine this when, in fact, that is not the case, and today, we find out the dnc is planning to do the very same thing they accused us of doing it by organizing 1000 town halls or even over the next weeks using the unions and the moveon.org-type organizations to help coordinate a response, so this is a very interesting dynamic i-5 right now, the democrats are doing what they accused us of over the last weeks -- so this is a very interesting dynamic right now. their concern is manifest at this point, and this administration is choosing to call them "out of touch" or calling them ": riggins" or " unamerican" -- "coul

hooligans.": greta: have you spoken to senator olympia snowe? >> i have not spoken to her. i hope that she and senator collins and others, who understand, from some very difficult parts of the country in terms of being a republican running for elected office, but i think on this issue, i think the philosophy is right. i think politics is right, and i think the opportunity is right to really define this in terms of the patient-doctor relationship with as little intrusion from the federal government as possible, and i think senator snowe and others will understand that. they are having town halls up in maine and parts of new england, as well. it is no less exciting, if you will, then it is elsewhere

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greta: minutes ago, a democratic congressman finished a rally town hall in virginia. we are live at that town hall. >> greta, "raowdy" is a good

word. i am not sure they have seen this much action since these town halls began. there was about 60% of the crowd support of the president's health-care initiatives and about 40% against. we saw people organizing on both sides. there was something printed up by organizing for america. there are thousands of these in the stands, so a lot of support. interestingly enough, once the auditorium got going, you could feel the energy. they handed at george washington's rules of civility. in all causes of passion, reason should govern, and i am not so sure that was the case inside or outside. take a look. >> health care now, health care now. >> whoo! >> we came out here.

we heard about this. we are, obviously, opposed to the government takeover of health care. >> the fact of the matter is you want to reform the entire health-care system. it is a farce. >> it is outrageous that not every american has health insurance. prove to was that it works, and then we will consider doing it nationally -- proved to us that it works. >-- prove to us. >> the cost is going up exponentially. >> this is a huge amount of money, and we need to be able to look at it rationally. >> we do not need a government option. >> solutions instead of just complaining about what we do not have, and work to being part of the solution instead of just saying no to everything. >> i am here. i am a physician. i spent my life taking care of people for nothing.

do you? >> if you had a chance to talk to him tonight, what are you going to secure them? -- say to him? how were dean, bringing most of the fire out in people -- how borodin -- howard dean, and he was on the sunday talk show circuit. take a look at what he said. >> this republican party is a shrinking republican party. it is just determined to undermine president obama, and, unfortunately, you have to undermine the country in order to undermine the president, and i think that is too bad. >> i had a chance to talk to men entering tonight's, and here is what happened. he is changing his tune a little bit -- i had a chance to talk to him entering tonight. listen to this.

can you clarify that? >> i did not say that. i did not say that. >> he was not made available and left very quickly, so i could not get him to verify that, but this has in no way lost steam. as you have seen, we have covered these for the last several weeks, and we will continue to do so. this got to a point where one was escorted out of for disrupting the events tonight. it lasted a little over two hours. greta: griff, i think you may hold the record for going to the most town hall meetings. are they smaller, bigger? what is the difference between the states? what are the similarities? >> a couple of observations. first, the earliest ones seemed to be a real referendum on washington, cash for clunkers,

an array of issues, and the last cabin focused on the health-care fight, and as we saw tonight -- and the last have been focused on the health-care fight. you see a larger turnout of folks that are opposed to it and focusing on health care. but it is not getting any lower, and, of course, the recent polls suggest support is waning a little bit for the president's health-care initiatives, and tomorrow, the democrats are going to continue to have these organizing parties, not tea parties, but they will be organizing rallies in support of health care, and something we will cover here on friday, california and making its way all the way to washington, so this fight is heating up here at the end of august as kids get ready to go back to school. greta: griff, thanks. and many people, over 1000, just

gusting in this checks from the federal government. you might blow a gasket when you find at who these people are and where these people are. plus, the best of the rest. jessica biel, quarterback tom brady, and a bunch of naked people.

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greta: here is a novel idea. how about the government being competent? especially when it comes to your money? the government mistakenly sent out stimulus checks to 1700 inmates to the tune of thousands of dollars. now, how did this happen? a reporter joins us. how is it that 1700 prison inmates got these stimulus jacks? >> -- the stimulus checks? >> they were distributing 52 million stimulus checks to people all across the country, and they were unaware that those individuals were, in fact, in prison. greta: is it really true that $425,000 was paid out? >> yes, that would be the

figure, if you take that figure and multiplying it. greta: how did you get wind of this? -- if you take that figure and multiply it. >> we went to the department of corrections, and they did confirm that some 23 inmates in massachusetts did receive the checks. critics of what happened to the checks? >> well, it turned out that some of the inmate to receive them were entitled to them, and the reason for that would be that some of them were free -- greta, what happened to the checks? they were under -- greta: what happened to the checks? they were lawfully drawing social security during that time were entitled to benefits. the other individual was a retiree from the railroad system, and there are no

restrictions on railroad retirees collected their benefits -- collecting their benefits once they go behind bars at some point in their life, and then the remaining -- just the remaining individuals who got the checks, we know that only five of them have sufficient funds to be able to pay the restitution. greta: so out of all of the checks, 1700's, and the $425,000, -- 1700's, -- 1700, how much did we get back? >> that is what the social security and administration is looking at right now. because they did not have any record -- what the social security administration is looking at right now.

whether they're actually entitled to the money or not. separately, the inspector general's office, or the social security administration is in the process of conducting an audit of those payments, which would look at whether payments were sent out to inmates, to people who were deceased, to fugitive felons, to people no longer living in the united states or no longer your lawfully. greta: do you have a profound sense that this is well organized, or do you get a sense that this is just a nightmare? >> you have to keep in mind that some 52 million people are drawing social security checks in the united states, so relatively speaking, 1700 is not the most significant figure in the world. greta: except that $425,000 would do a lot for a lot of the

unemployed people. i imagine they could feel upset about that. anyway, thank you. >> thank you for the time. greta: a up next, john mccain goes on the record about a revolt here in the united states, and yes or no, where a john mccain vote for a bill without a public option -- and up next, john mccain. and the white house

we will be back with more information.

this is breaking news out of our headquarters. headquarters. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- greta: senator john mccain's faced people at a town hall meeting, and he went on the record -- senator john mccain faced people. nice to see you, sir. >> nice to see you, greta. i am sorry i am a few minutes late. there are construction delays. greta: i think they call those

shovel-ready projects. >> there you go. greta: you called a town hall meeting a peaceful revolt. is that what you think these are? >> i think what is happening in the country is a peaceful revolt that has sort of a ignited because of the incredible generational theft. with all of the spending in the trillions of dollars of debt, now an estimate of $2 trillion more in the next 10 years, and people are very nervous and very upset about that, and then you have a government-mandated health-care plan that costs $1 trillion or $2 trillion more, and i think in probably one of the most unusual ways that i have seen, they are standing up and saying "enough." greta: you say they are upset about the projection of the 10- year deficit and health-care costs.

do they feel any better after the town hall meeting? >> i do not know if they feel any better. there may be a better understanding about the issues and challenges that they face, a public option, which is really the government option, which is not really something that would do anything but lead to a government takeover of health care in america. they are very concerned, of course, about many aspects of the issue, but the, quote, public option, and i use quotes because it really is the government option -- greta: is there any way you would vote for health-care reform that had a public option in it? >> no, i could not do that. i think the hippocratic oath is first do no harm, and we would do great harm, because there is no doubt in my mind that this public option would sooner or later takeover of our health- care system. if it was just another insurance

policy, then we would have 1501 opportunities, but this would over time deprive people of choice. one woman stood up at this town hall meeting, and she said, "i get the sense that we are losing our freedom," and in a way, when you're talking about your freedom to choose your health- care provider, your doctor, your medicine, and all of those things, in a certain way, her freedom and many americans' are at risk here. greta: with the democrats and the house, they could lose some, and even in the senate, as well. has anyone paula deen aside to say, "listen, i do not like that government/public option either. i do not think i can vote for it"? -- has anyone polish you

aside? >> medich there is going broke. -- has anyone pulled you aside? >> medich here is going broke. -- medicare is going broke. medicaid is going broke. if the democrats insist on this, quote, "public auction," no, i could never supported. it has to be off of the table -- it did a public option." -- "public option." greta: what about this reform? >> i think the president is torn. there is, of course, the center that is also becoming more and more nervous because they are hearing from their constituents.

it is not clear to me where the president will go. one of the things he might do is come up with a proposal on its own, but, again, i repeat. i know that republicans are willing to try to put incentives and wellness there, to reform medical malpractice reform, to have a broader choice and range of options, such as the purchase of health insurance across state lines and many other changes that i think we can agree on, but not a big government solutions. greta: -- not a big government solution. greta: is there anything that he is saying now that you did not hear before during the run-up which is a big change? >> no, except that the president continues to say that if you like your health insurance policy, you can keep it, and if you have a public option, and

some of the proposals that are passed through the senate health committee which i am a member of and is about to be voted on in the house, if you cannot keep your insurance policy. it would fundamentally change. greta: why is he saying that? he simply disagrees with you? where he has different information? is he dead wrong? -- or he has different information? >> i think he must have bad information, and i respect the president. i respect the results of the election. the fact is that the president was for this quote public option many years ago, and he does have a very liberal, big-government voting record, and this is where we of fundamental, philosophical differences. i say that with respect -- and this is where we have fundamental, philosophical differences. greta: senator feingold said, and i am paraphrasing, these are

my words, but he was talking about there being a health-care reform bill by christmas. is this going to happen? >> i do not know. i am very disturbed to hear recent -- and it is only in the media, because i am not consulted -- information that the democrats would bring up the so-called reconciliation, which means that you can pass significant legislation with only 51 votes. that would set a terrible precedent. i think it would blow up the senate. i think it would fundamentally change the way it functions, but i also thing democrats believe they do not want to repeat the failure of clinton care, the proposal by the president and then-mrs. clinton, now secretary clinton, his back in 1993, >> this is a fox news alert.

the office of senator ted kennedy is confirming that this average that the 77 year-old lawmaker has died. senator kennedy has been battling brain cancer since may of last year. he died at his vacation home in massachusetts. he has served the senate since 1962. it was the youngest brother of president john kennedy. our reporter has more on the life and legacy of senator ted kennedy. >> his life was a series of triumphs and losses. he was seen by many as the american version of a greek tragedy. born into a family that will become political loyalty. edward moore kennedy lived his entire life in the public eye. >> i jaundice gerald kennedy do solemnly swear. >> with his brother's election to the presidency in 1960, it seems that the kennedys had the makings of a political dynasty. another brother was attorney general. teddy was elected to the senate

in 1962. assassins' bullets stole his brothers away. he was alone to shoulder the burden of a grieving family. it was dead and delivered the eulogy at bobby's funeral in 1968. his voice breaking with emotion. >> those of us love them. we will take into his arrest today. we pray that what he was to us and what he was for others will someday come out for the rest of the world. >> his own aspirations were derailed for the white house when his car plunged off a bridge on martha's vineyard. it killed one person. he swam to safety and alerted authorities to the accident but hours later. as the body was pulled from the dark sedan, the senator told investigators that he panicked. >> it will live with me for the rest of my life -- every day of my life.

>> an investigation later absolves them of responsibility. question about his character will follow him in hot his political ambitions for the nation's highest office. >> today i formally announce that i am a candidate for president of united states. >> despite this, he decided to throw his hat into the 1980 presidential race. he was going up against jimmy carter. he lost his bid to the white house, but gave a spirited speech at the convention. >> the work goes on. the cause indoors. the hope still lives. the dream shall never die. >> his run for the presidency over, he be charged to the senate, becoming the lion of the liberals. his private life became fodder for the tabloids. in 1982, after 24 years of marriage, he was divorced from his wife. his prolific legislative achievements were often eclipse by his reputation as a hard drinker. in 1991, his nephew was charged

with raping a woman at the family's palm beach estate. smith was acquitted. but not before the senator was called as a witness. he was portrayed poorly in the press as an aging playboy befuddled by boos. his want firm grip on massachusetts, a state that supported him through numerous scandals, was beginning to decrease. he became involved in a relationship with that change the latter part of his life. he married a divorced mother of two. those close to the senator said he finally found the happiness and peace he had sought for so long. he began to repair his tattered reputation, fighting for the social issues he believed in a like universal health care. despite never winning the white house, he remained an ardent support for other democrats. he endorsed barack obama early in his campaign. he compared the illinois senator

with his late brother john. >> he is tough-minded. he also has an uncommon capacity to appeal to the better angels of our nation -- nature. i am proud to stand with him today and offer my help, offer my voice, offer my energy, my commitment to make a barack obama the next president of the united states. >> in may, 2008, he suffered a seizure at his cape cod home and was diagnosed with a malignant brain tumor. kennedy contributed to more than 300 bills in the senate. they were eventually signed into law. he played a key part legislation outlining immigration reform, elimination of apartheid, its care, education, the most notably health care. his triumph often overshadowed by those of his brothers. kennedy nonetheless courses own legacy. a giant of american politics, and one of the longest serving

senators in u.s. history. in washington, fox news. >> senator ted kennedy dead at the age of 77. he died of brain cancer. he was diagnosed in may of last year. he has been battling cancer for some time now. he was elected into the u.s. senate in 1962. the youngest brother of president john f. kennedy. the youngest of nine. ted kennedy at the age of 77. i am in the new york newsroom here at the fox news channel. we will have more. now back-to-back greta.

>> we are going to talk about the budget and the debt. why does anybody give a darn about the deficit and the debt and what it means. when they talk about the deficit, both sides, the white house and congress, they say it will be $1.60 trillion. what they are saying is that if the government spends $1, the only take 90 cents in taxes, that is a 10 cent shortfall. they have to borrow 10 cents each year. each year, the deficit, the shortfall keep adding up. that is the deficit. it adds up to what we call the national debt. according to the white house,

the total within 10 years will grow to $9.10 trillion. congress is saying that it will grow by $7.10 trillion. a lot of money. that is the debt. what is the key question? why you, why does anybody care? and lots of people say that we can live with these numbers. here is why. i was horrified to store this, the fed would come after us. maybe 76 or 66 depending on the estimates -- 76% of the country's debt will be equivalent to 76% of gdp.

that means the entire economy, roughly 76% of it will be in debt. when you are financing that much debt and you have it trillions of dollars in debt, the government has to borrow money at higher interest rates. they pay to borrow money. there is less money for you to borrow to buy a car or a house, and they have to pay that money back. to get more money, they have to increase interest rates. the interest rates you will pay will be even a high gear. that is why deficits and debt are a problem. forget paying it back. the cost of doing business -- if it gets more expensive, it is a problem. greta: what the numbers so different from the white house and congress? >> here is the simple answer. the white house estimate

includes the potential for health care. let's say health care legislation. greta: where do they get those numbers? those numbers are made up. >> it is money added to the deficit and budget spending. the congressional budget office is only looking at everything right now as it is. no health care spending, it is assuming the tax breaks that were enacted under president bush will expire in 2011. some are counting the new money coming into the treasury. you would think it would be lower than what the white house is saying. it is. they still say the national debt is going up. greta: could do we trust? >> your mom. your dad. greta: when you overspend your

means, it is not a good sign. >> the take away from all of this is that we always think of it as we have to pay it back. think of it this way. the more debt there is, the more expensive it is to do business. the more it is going to cost for you to borrow money. not as much debt as other countries. greta: adam shapiro you are the best. thanks for staying up with us. one actress is the most dangerous celebrity in the world. we will find out what that means next. some people are making headlines from coast to coast. one of them is taking the term " flying to from the skies" on a . on a . [ female announcer ] the deeper you clean, the cleaner you feel. olay deep cleansers go beyond what the eye can see.

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through treatment... my life's a whole lot brighter now... brought to you by the u.s. department of health and human services. greta: you have seen our top stories, but here is the best of the rest. there is a show happening in new york city, and is very much happening out in the open. some people have allegedly been showing off, shsh >> this is a box news alert.

i am in the new york city newsroom. we are getting more information about the death of ted kennedy who died just moments ago at the age of 77 from brain cancer. he probably died about 30 minutes ago, or that is when his office is confirming that. we have been talking about this for the last 30 minutes. we are just getting a statement from the family. keep it reads we have lost the irreplaceable center of our family. his faith, optimism and perseverance will live on in our hearts forever. we thank everyone who gave him care and support over this last year, and everyone who stood with them for so many years in his tireless march for progress towards justice. senator ted kennedy did at the age of 77. he won his eight full senate tons in 2006 and served in massachusetts. we will continue to bring you more information throughout the evening as we get that information into our newsroom.

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greta: 11:00 is almost here. it is time for last call. david letterman may have just met his match. a "vogue" editor went to his show, and meryl streep's character was based on her in a movie. >> i am and elian, fleeing from district 9. a dominatrix -- i am an alian. -- alien. >> that movie, "doevil wears prada." >> well, i remember that movie was fiction, and we really like

fiction active a vote -- at "vogue." >> i tried to give very clear direction. unfortunately, they do not hear the answer that they would like to hear. >> have you ever put anybody in a headlock prov? [laughter] >> maybe you. >> i was impressed that before it went to press, it was still undecided, that there were still re-shoots going on. is that typical? >> absolutely, like a television show. you guys did not even call me until friday. [laughter] greta: did dave just get a smackdown? we report, you decide. we will see you tomorrow night. do not forget,